EXECUTIVE SUMMARY

The Promotion of online banking technology enabled the banks to enhance its operations with cost cutting effectively and efficiently in order to handle daily banking affairs via online banking channel. Customers are being facilitated by reducing their visits in banks and they can carry out their transactions via internet or ATM Machines instead of personally visiting the branches. The researches so far done reveal that mostly the customer of banks are unaware about online banking services and there is a lack of trust among customers on online banking services. This study examines the customer perception, preferences, problems and suggestions about online banking in India. The study reveals that mostly customers prefer internet banking (IB) services over branch banking due to reliability, convenience, speed, safety and security, cost effectiveness, user-friendly, and error free system. In contrast the parallel finding shows that security problems, lack of trust and knowledge, ATM machine problems etc. affect the adoption decision of customers of internet banking services. This study will help the banks that how they can improve the level of online banking services and what are the potential issues or services that should be introduced in society to facilitate the customer in a better way and to compete their rivals in banking industry as a whole. The project for better evaluation and understanding is divided in the following chapters:-

Chapter 1 includes the introduction and importance of the topic, objectives of the study and research methodology Chapter 2 deals with the conceptual framework Chapter 3 deals with literature review Chapter 4 includes the data analysis of the data collected through survey. Chapter 5 reflects the conclusion Chapter 6 represents the recommendations for banks

CHAPTER 1 INTRODUCTION

1.1 Importance of the study

This study is of great importance specially for banking industry. This research will help the managers to cope the problems of customers about IB services which are indicated in the study. The customers views have also been taken in same study about those IB services which are still not available. So in relation to that information it will help the managers to formulate strategies / policies about those IB services which are still unavailable to the users of IB services and also give the competitive advantage against other banks and also facilitate to compete global market. In result new banking strategies will fulfill the customers requirements about IB services and increase customer loyalty as well.

1.2 Objective of the Study

The main objective of this study is to know about the customer perception regarding the usage of online banking in India. The study further explores either customer feels the Internet Banking as a valuable and useful step of technology in banking services or not. For this purpose to conduct the research in every city of India is very difficult because data collection is not an easy task at national level. For the ease of data collection and to save the time & cost the research has been conducted online . In order to know all about Internet Banking, the information which is gathered is split up into 3 parts. Initially, the study explored that why customers use internet banking (IB). Secondly, why customers do not use IB and in the last we took customer perceptions about improvements that should bring in IB services. This information will become very helpful for managers to determine the customer perceptions about those IB services which are still not available to them and help them to formulate strategies / policies about IB according to customer needs and wants. The following are the objectives of the study: 1. Reasons of using IB of customers and their satisfaction level 2. Determining the main reasons for not using IB. 3. Determine the customer perception about new IB product and services.

1.3 Hypothesis testing

Three objectives and hypothesis are generated which are given below. They are investigated and explained briefly in next sections. Objective 1: To investigate the level of satisfaction and trust in using IB in Qatar. Hypothesis 1: Large number of customers perceive IB as not safe or secure channel for conducting their banking transactions, however, users are generally satisfied with the service. Objective 2: To determine the main reason for not using IB. Hypothesis 2: Various factors can affect the adoption of IB. These could be the security concerns about IB, lack of knowledge, and demographic factors etc. Objective 3: To determine the perceived importance of diverse IB services (current & new). Hypothesis 3: Obtaining general information about accounts status is perceived as more important than other services that require conducting transactions.

1.4 Research methodology

To measure these objectives, empirical data is used for analyzing and finding the proper result. For this purpose, questionnaires are designed which are explained in detail below: Questionnaire Design Main objective of this study is to observe the behavior of customers towards internet banking. To know customers perception whether they like or dislike internet banking and their recommendations about internet banking, a sample questionnaire was designed in which 5-Point Likert style scale is used. To collect the information and data about the potential of bank customers for which eight questions are used. Personal information such as mobile number, address etc is avoided in questionnaire. Data Collection The study is based on primary data collected from two hundred banks customers. All questionnaires were completed one by one and properly reviewed. During the data gathering the respondents were asked to fill first section of the questionnaire if they are satisfied with online

banking services or to fill second section if they are not satisfied. The third portion of questionnaire is for all respondents either they are satisfied or not. Research type Descriptive research is also called Statistical Research. The main goal of this type of research is to describe the data and characteristics about what is being studied. The idea behind this type of research is to study frequencies, averages, and other statistical calculations. Although this research is highly accurate, it does not gather the causes behind a situation . Descriptive research is used to obtain information concerning the current status of the phenomena to describe "what exists" with respect to variables or conditions in a situation.

Sampling Random and Convenience sampling technique has been used. It is also called haphazard or accidental sampling. Members of the population are chosen based on their relative ease of access. To sample friends, co-workers, or shoppers at a single mall, are all examples of convenience sampling. Sometimes called grab or opportunity sampling, this is the method of choosing items arbitrarily and in an unstructured manner from the frame. Though almost impossible to treat rigorously, it is the method most commonly employed in many practical situations.

Statistical tools used The main statistical tools used for the collection and analyses of data in this project are: Pie Charts Bar Graphs Tables

The research methodology can be summarized as under: Sampling Unit Sampling Size Sampling Technique Bank Customers 200 Random and Convenience sampling.

Project Instrument

Standardized questionnaire

CHAPTER 2 CONCEPTUAL FRAMEWORK

2.1 What is online banking?

A banker or bank is a financial institution whose primary activity is to act as a payment agent for customers and to borrow and lend money. It is an institution for receiving, keeping, and lending money. Online banking Online banking (or Internet banking) allows customers to conduct financial transactions on a secure website operated by their retail or virtual bank, credit union. Internet banking (or E-banking) means any user with a personal computer and a browser can get connected to his banks website to perform any of the virtual banking functions. In Internet banking system the bank has a centralized database that i s w e b e n a b l e d . Internet banking is the term used for new age banking system. Internet banking is also called as online banking and it is an outgrowth of PC banking. Internet banking uses the internet as the delivery channel by which to conduct banking activity, for example, transferring funds, paying bills, viewing checking and savings account balances, paying mortgages and purchasing financial instruments and certificates of deposits. Internet banking is a result of explored possibility to use internet application in one of the various domains of commerce. It is difficult to infer whether the internet tool has been applied for convenience of bankers or for the customers convenience. But ultimately it contributes in increasing the efficiency of the banking operation as well providing more convenience to customers. Without even interacting with the bankers, customers transact from one corner of the country to another corner. There are many advantages of online Banking. It is convenient, it isnt bound by operational tim ings, there are no geographical barriers and the services can be offered at a minuscule cost (IAMAIs, 2006). Electronic banking has experienced explosive growth and has transformed traditional practices in banking. In its very basic form, e-banking can mean the provision of information about a bank and its services via a home page on the World Wide Web (WWW). More sophisticated e-banking services provide customer access to accounts, the ability to move their money between different accounts, and making payments or applying for loans via e-Channels. The term e-banking will be used in this book to describe the latter type of provision of services by an organization to its customers. Such customers may be either an individual or another business. To understand the electronic distribution of goods and services, the work of Rayport and Sviokla (1994; 1995) is a good starting point. They highlight the differences between the physical market place and the virtual market place, which they describe as an information-defined arena. In the context of ebanking, electronic delivery of services means a customer conducting transactions using online electronic channels such as the Internet. Many banks and other organizations are eager to use this
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channel to deliver their services because of its relatively lower delivery cost, higher sales and potential for offering greater convenience for customers. But this medium offers many more benefits, which will be discussed in the next section. A large number of organizations from within and outside the financial sector are currently offering e-banking which include delivering services using Wireless Application Protocol (WAP) phones and Interactive Television (iTV). Many people see the development of e-Banking as a revolutionary development, but, broadly speaking, e-banking could be seen as another step in banking evolution. Just like ATMs, it gives consumers another medium for conducting their banking. The fears that this channel will completely replace existing channels may not be realistic, and experience so far shows that the future is a mixture of clicks (e-banking) and mortar (branches). Although start up costs for an internet banking channel can be high, it can quickly become profitable once a critical mass is achieved.

2.2 Need for internet banking:

One has to approach the branch in person, to withdraw cash or deposit a cheque or request a statement of accounts. In true Internet banking, any inquiry or transaction is processed online without any reference to the branch (anywhere banking) at any time. Providing Internet banking is increasingly becoming a "need to have" than a "nice to have" service. The net banking, thus, now is more of a norm rather than an exception in many developed countries due to the fact that it is the cheapest way of providing banking services.
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Banks have traditionally been in the forefront of harnessing technology to improve their products, services and efficiency. They have, over a long time, been using electronic and telecommunication networks for delivering a wide range of value added products and services. The delivery channels include direct dial up connections, private networks, public networks etc and the devices include telephone, Personal Computers including the Automated Teller Machines, etc. With the popularity of PCs, easy access to Internet and World Wide Web (WWW), Internet is increasingly used by banks as a channel for receiving instructions and delivering their products and services to their customers. This form of banking is generally referred to as Internet Banking, although the range of products and services offered by different banks vary widely both in their content and sophistication. From the perspective of banking products and services being offered through Internet, Internet banking is nothing more than traditional banking services delivered through an electronic communication backbone, viz, Internet. But, in the process it has thrown open issues which have ramifications beyond what a new delivery channel would normally envisage and, hence, has compelled regulators world over to take note of this emerging channel.

Some of the distinctive features of internet banking are: 1. It removes the traditional geographical barriers as it could reach out to customers of different countries / legal jurisdiction. This has raised the question of jurisdiction of law / supervisory system to which such transactions should be subjected, 2. It has added a new dimension to different kinds of risks traditionally associated with banking, heightening some of them and throwing new risk control challenges, 3. Security of banking transactions, validity of electronic contract, customers privacy, etc., which have all along been concerns of both bankers and supervisors have assumed different dimensions given that Internet is a public domain, not subject to control by any single authority or group of users, 4. It poses a strategic risk of loss of business to those banks who do not respond in time, to this new technology, being the efficient and cost effective delivery mechanism of banking services, 5. A new form of competition has emerged both from the existing players and new players of the market who are not strictly banks.

2.3 Evolution of e-banking

There have been significant developments in the e-financial services sector in the past 30 years. According to Devlin (1995), until the early 1970s functional demarcation was predominant with many regulatory restrictions imposed. One main consequence of this was limited competition both domestically and internationally. As a result there was heavy reliance on traditional branch based delivery of financial services and little pressure for change. This changed gradually with deregulation of the in-E-Banking Management IGI Global, distributing in print or electronic forms without written permission of IGI Global is prohibited industry during 1980s and 1990s, whilst during this time, the increasingly important role of information and communication technologies brought stiffer competition and pressure for a faster pace of change. The Internet is a relatively new channel for delivering banking services.

2.4 Internet Banking Vs Traditional Banking

The basic difference between Internet banking and traditional banking is that in traditional banking the customer has to visit the branch in person for the basic banking needs viz. withdrawal or deposit of cash, transfer of funds, statement of accounts, etc.In Internet banking, on the other hand, these operations can be performed through the PCs without physically visiting the bank branch. It is a win-win solution both for customer and the bank. The customer is not put to inconvenience of traveling, and the time so saved can be effectively utilized in other productive ways, whereas the bank earns by having lower overheads, establishments, premises and maintenance costs, in turn resulting into reduced per transaction cost. The greatest advantage of Internet banking is that it enables a customer to perform basic banking transactions through PC or Laptop, located anywhere in the world. Through the internet, customer accesses the banks website for viewing the account details or performing the basic banking transactions. The other major advantages emerging out of Internet banking are as follows: 1. The customer can perform basic banking transactions, round the clock. 2. No personal visit to the branch is required. 3. One can access and operate ones account from anywhere in the world. 4. The extensive, geographically divergent, traditional brick and mortar structure of the branch need not be there 5. The requirement of staff at branches gets optimized. 6. Easy, convenient, efficient and speedy banking services both for the bank and the customer. 7. Transaction is automatically reconciled and posted in all required data tables, thus reducing the workload.

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2.5 Mechanics of internet banking

The basic steps involved in completing transactions through Internet banking are extremely simple and are available in a user-friendly environment. One does not necessarily need to possess detailed computer knowledge to complete transactions through internet banking. The availability of a user-friendly demo version of the site as well as on-line help means that even first time users are able to use the facility. The entire mechanism involved in Internet banking is outlined below: 1. Access the Banks website 2. Click on the option which provides Internet Banking 3. Enter the User-ID, Password/PIN 4. Perform the requisite transactions 5. Logout

2.6 Services
Internet banking service offers banking services on-line with the same personal effort that is received at the branch. On-line request are processed by a proactive team of personal bankers adhering to service quality standards. Services offered include the following: 1. Sending in request for a cheque book from the convenience of home 2. Viewing accounting statements on-line 3. Notification of change of address so as to update the records 4. Requesting for a draft on-line to be couriered at the mailing address specified by the customer 5. Transferring funds between one accounts of the customer to another account of the same customer. 6. Viewing details of past 3 months transactions Customer 7. Updating of foreign exchange currency rates 8. Intimating on-line about a stop payment 9. Notification of lost/stolen ATM card The internet banking service adds more value to NRIs who can view their balances online and also effect fund transfer, just at the click of a mouse. Moreover, Internet banking has no time zones and is accessible round the clock without restricting it to any geographical boundary.

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2.7 Drawbacks of internet banking

Despite the fact Internet banking has come to revolutionize the whole way the banking is transacted in modern times, it is not free from criticism. Following are some of the drawbacks of Internet banking: 1. Needs a Computer In order to use the Internet banking services, the user needs a computer and time to log on to the website of the bank. This means that the target clientele is restricted to those who have a home PC or can access the net through the office or cyber cafes. The customer has to pay every time to check the balance. This can be done free at an ATM. 2. Restricted Use Another drawback of Internet banking is that it is not possible that all transactions can be carried out electronically. Many deposits and some withdrawals require the use of postal services, which can be slow and reliable even in developed economies. 3. Unreliable Communication Facility The use of Internet banking requires the use of uninterrupted telecommunication facility. Where phone connections are not perfect and where on a home PC the modem often gets disconnected, frequent and tedious log-on becomes necessary. 4. Slow Browsing Often it becomes frustrating to browse the Internet to be able to access he host of financial products that are made available in the website of the bank. Navigating around websites on home computers is often slow and frustrating. Pages take inordinately long time to load and, as Internet users have a particularly low irritation threshold; a few frustrated attempts could put the user off, quite seriously. 5. Lack of Trust The use of Internet banking services depend much on the trust reposed by the customers of a bank on the Internet banking initiative of the bank. It therefore becomes an imperative that Internet start-ups gain the trust of depositors before they will make deposits. Customers may get less protection that with established banks. 6. Absence of Validity
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Absence of necessary legal framework for recognizing the validity of banking transactions is another impediment for the Internet banking. 7. Safety Problem Security threats on the Internet leads to perception of Internet banking as an unsafe channel. This dissuades the customers in making popular use of the Internet banking It is to be noted that most of the problems mentioned above are in the nature of teething problems and bankers are quite alive to them and it is expected that these would be eliminated over period of time.

2.8 Internet Banking Major Issues

There is a fear that in banking and in any other industry, the Internet may destroy basic business pricing models. At the same time, it also opens up abundant opportunities .The major issues relating to the use of Internet in the realm of banking and financial services are discussed below: 1. Sustainability The internet banking creates perfect market conditions where customers have access to more information and can more readily compare rates and financial products offerings. This would pose considerable problems for banks as it would be difficult for them to differentiate quality of customer service pricing and reliability through internet channels. This would ultimately affect the banks sustainability as regards profit margins. 2. No Entry Barriers Internet banking has no entry barriers. This encourages even new banks to establish a physical distribution channel to successfully compete with current banking majors. This way, Internet banking makes possible new start-up players to launch retail banking services more economically. 3. Cost Factor Many a time, Internet banking has resulted in pushing up the cost of bank operations. This mat be due to fact that banks that start Internet banking operations, although automate their front-end process for the customers, still largely depend upon manual processes at the backend. A case in point is that the Internet customers receive their statement on-line but paper statements are also sent. Similarly, customers complete
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account opening application on-line which is sent electronically to the bank. Many banks print the account application and enter the application data into another system, thereby increasing the operational overheads. Similarly, mail and distribution costs are still necessary as the statement, cheques etc. are still mailed. 4. Dominant Traditional Banking The development of Internet banking allows for the efficient delivery of a wide variety of web based banking products. It simply adds to proliferation of technology based delivering channels such as ATMs, phone banking, on-line banking etc. However, customers, by and large, support traditional branch banking. Moreover, Internet based transactions are generally not fully automated, as the same may require additional telephone calls, paper work, data entry etc. 5. No Float Benefit For quite a long time, banks are traditionally taken benefits of income from floats, the short term us of funds during the period the funds are allowed to reach the destination. The revenue from these resources will reduce since electronic channel like Internet banking, speedup settlement processes. 6. Marketing Challenges The proliferation of Internet Banking throws a challenge to the banking sector in that it warrants banks to undertake changes in current structure and functional processes so as to allow for the provision of efficient banking service. It often becomes difficult for the banks to deliver information quickly as they are trapped by unaligned organizational structure and costly legacy systems. 7. Marketing Advantage Internet banking facilitates easy marketing of banking and financial products and services. For instance, it allows customers to easily compare all the products and sign-up for all the products irrespective of location. 8. Advantage for New Players New players in the realm of Internet banking would find the going advantageous to them. They command cost advantage over the older banks. This would prompt the new banks to

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indulge in undercutting of prices, thus paving the way for greater competition to old banks. 9. Higher Ratings Generally, stock markets tend to form a conservative opinion about old banks because of their slow rate in adoption of technology. On the other hand, the internet advantage would enable the new entrants to secure higher ratings. This would help them raise money needed for business cheaply. This way, the new banks would attack the old banks either organically or through acquisitions.

2.9 E banking support services:

Web Linking A large no. of financial institution maintains sites on the websites are strictly informational while others also offers to customers the ability to perform financial transactions such as paying bills transferring funds etc. Wireless e banking Wireless banking is the delivery channel that can extend the reach and enhance the convenience of Internet banking products and services. Wireless banking occurs when customers access a financial institution's network(s) using cellular phones, pagers, and personal digital assistants (or similar devices) through telecommunication companies wireless networks. Wireless banking services in the United States typically supplement a financial institution's e-banking products and services. Person-to-person Payments Electronic person-to-person payments, also known as e-mail money, permit consumers to send money to any person or business with an e-mail address. Under this scenario, a consumer electronically instructs the person-to-person payment service to transfer funds to another Individual. The payment service then sends an e-mail notifying the individual that the funds are available and informs him or her of the methods available to access the funds including requesting a check, transferring the funds to an account at an insured financial institution, transmitting the funds to someone else. Person-to-person payments are typically funded by credit card charges transfer from the consumers account at a financial institution. Since neither the payee nor the payer in the transaction has to have an account with the payment service, such services may be offered by an insured financial institution, but are frequently offered by other businesses as well. Banking Services through Internet:
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There are four types of plastic cards being used as media for making payments. These are: 1. Credit Card 2. Debit Card 3. Smart Card 4. ATM Card 1. CREDIT CARDS: - The credit card enables the cardholders to: Purchase any item like clothes, jewellery , railway/air tickets, etc. Pay bills for dining in a restaurant or boarding and lodging in hotel Avail of any service like car rental, etc.

2. DEBIT CARDS: -A debit card is issued on payment of a specified amount by the issuing company like a telephone company to a customer on cash payment or on debiting his account by a bank. Thus it is like an electronic purse, which can be read and debited by the required amount .It may be noted that while through a credit card, the customer first makes a purchase or avails service and pays later on, but forgetting the debit card, a customer has to first pay the due amount and then make a purchase or avail the service. For this reason, debit card are not as popular as credit cards. 3. SMART CARDS: -Smart Cards have a built-in microcomputer chip, which can be used for storing and processing information. For example, a person can have a smart card from a bank with the specified amount stored electronically on it. As he goes on making transactions with the help of the card, the balance keeps on reducing electronically. When the specified amount is utilized by the customer, he can approach the bank to get his card validated for a further specified amount. Such cards are used for paying small amounts like telephone calls, petrol bills, etc. 4. ATM CARDS: - The card contains a PIN (Personal Identification Number) which is selected by the customer or conveyed to the customer and enables him to withdraw cash up to the transaction limit for the day. He can also deposit cash or cheque.

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CHAPTER 3 LITERATURE REVIEW

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1. Rajesh Kumar Srivastava (2011) investigated that Internet banking is still at infancy stage in the world. Many studies focused on usage of internet banking but many factors on non-usage were overlooked. This research was carried out to validate the conceptual model of internet banking. The causes were identified and researched through correcting the causative factors so that internet banking can be used by more people. The research is focused on what are the customers perceptions about internet banking and what are the drivers that drive consumers. How consumers have accepted internet banking and how to improve the usage rate were the focus of research area in this study. Qualitative exploratory research using questionnaire was applied. 500 respondents were selected for study after initial screening. They were all bank customers. The study revealed that education, gender, income play an important role in usage of internet banking. Not much research has been done on these areas as they were focused more on the acceptance of technology rather than on people. The research corroborated the conceptual framework stating that if skills can be upgraded there will be greater will to use internet banking by consumers. Inhibitory factors like trust, gender, education, culture, religion, security, price can have minimal effect on consumer mindset towards internet banking.

2. Rao et al. (2011) identified a theoretical framework of Internet banking in India and found that as compared to banks abroad, Indian banks offering online services still have a long way to go. For online banking to reach a critical mass, there has to be sufficient number of users and the sufficient infrastructure in place. I.T. has introduced new business paradigms and is increasingly playing a significant role in improving the services in the banking industry. Internet banking is becoming more and more popular today, as is banking via digital television. Beyond doubt, a substantial part of the future of banking business lies in a banking environment that is less and less branch-based and where customers are able to access banking services remotely. The automated service quality research has been limited to relationship management rather than service quality or its acceptance by consumer.

3. Corrocher (2011) investigated the determinants of the Internet technology adoption for the provision of banking services in the Italian context and also studied the relationship between the Internet banking and the traditional banking activity, in order to understand if these two systems of financial services delivery are perceived as substitutes or complements by the banks. According to the results of the empirical analysis, banks seem to perceive Internet banking as a substitute for the existing branching structure, although there is also some evidence that banks providing innovative financial services are more inclined to adopt the innovation than traditional banks. Technology has had a remarkable influence on the growth of service delivery portions (Dabholkar & Bagozz, 2011).
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4. Prof.K.T. Geetha1 & V.Malarvizhi (2011) had investigated that the factors which are affecting the acceptance of e-banking services among the customers and also indicates level of concern regarding security and privacy issues in Indian context. Primary data was collected from 200 respondents through a structured questionnaire. Descriptive statistics was used to explain demographic profile of respondents and Factor and Regression analyses were used to know the factors affecting e-banking services among customer in India. The finding depicts many factors like security and privacy and awareness level increased the acceptance of e-banking services among Indian customers. The finding shows that if banks provide them necessary guidance and ensure safety of their accounts, customers are willing to adopt e-banking.

5. Arne Floh (2011) examined the importance of online loyalty such as trust, quality of the Web
site, quality of the service and overall satisfaction. Rather than investigating which factors drive customers to use online banking instead of offline banking, this paper addresses the problem of how to keep customers online and loyal to a specific supplier. A survey among more than 2,000 customers of an Austrian online bank was conducted and a structural equation modeling approach was used to gain important insights into how customer retention in the online banking business can be ensured. Satisfaction and trust were identified as important antecedents of loyalty. Additionally, the moderating role of consumer characteristics (gender, age, involvement, perceived risk and technophobia) was supported by the data.

6. R. Geetha (2011) had explained that the Online banking or Internet banking allows the customers to conduct banking, financial and insurance transactions on a secure and protected website operated by their retail or virtual bank. Normally the customer would have to make a trip to the bank to do these transactions, but with the advent of internet banking the ease of account operation for customers has gone up. All the customer requires is a PC with an internet connection and internet banking login id and password to use this facility.

7. Sankaran, Vidya (2010) aim was to find out the customers perception to internet banking and also tries to examine whether there is any relation between various demographic variables and customers perception about internet banking. The sample consisted of 200 bank customers, 54 from State Bank of India, 44 from ICICI, 27 from HDFC, 19 from other private sector banks, and 56 from other public sector banks. The convenience sampling technique was adopted for selecting the respondents. Tool for measuring the variables was developed by the researcher with the help of previous studies. A questionnaire was developed on a five point likert scale. The reliability and validity of the questionnaire was assessed and found to be 0.7501.
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8. Malhotra, Pooja & Singh, B. (2010) investigates present status of Internet banking in India and the extent of Internet banking services offered by Internet banks. In addition, it seeks to examine the factors affecting the extent of Internet banking services. The data for this study are based on a survey of bank websites explored during July 2009. The sample consists of 82 banks operating in India. Multiple regression technique is employed to explore the determinants of the extent of Internet banking services. The results show that the private and foreign Internet banks have performed well in offering a wider range and more advanced services of Internet banking in comparison with public sector banks. Among the determinants affecting the extent of Internet banking services, size of the bank, experience of the bank in offering Internet banking financing pattern and ownership of the bank are found to be significant. The primary limitation of the study is the scope and size of its sample as well as other variables (e.g. market, environmental, regulatory etc) which may have an effect on the decision of the banks to offer a wide range of Internet banking services. The purpose of the study is to help fill significant gaps in knowledge about the Internet banking landscape in India. The findings are expected to be of great use to the government, regulators, commercial banks, and other financial institutions, e.g. co-operative banks planning to offer Internet banking bank customers and researchers. An understanding of the factors affecting the extent of Internet banking services is essential both for economists studying the determinants of growth and for the creators and producers of such technologies. Moreover, this paper contributes to the empirical literature on diffusion of financial innovations, particularly Internet banking in a developing country, i.e. India.

9. Dr. Saroj K. Datta(2010) concluded that the factors which are affecting the acceptance of e-banking services among adult customers and also indicates level of concern regarding security and privacy issues in Indian context. Primary data was collected from 200 respondents, above the age of 35, through a structured questionnaire. Statistical analysis, descriptive statistics was used to explain demographic profile of respondents and also Factor and Regression analyses were used to know trend of internet use and factors affecting e-banking services among adult customer in India. The finding depicts many factors like security & privacy, trust, innovativeness, familiarity, awareness level increase the acceptance of ebanking services among Indian customers. The finding shows that in spite of their security and privacy concern, adult customers are willing to adopt online banking if banks provide him necessary guidance. Based on the results of current study, Banks managers would segment the market on the basis of age group and take their opinion and will provide them necessary guidance regarding use of online banking.

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10. Polaris Software Lab (2010) had this study Polaris Software Lab Limited (POLS.BO),a leading Financial Technology Company, launched Intellect(TM) PRIVACY based on state-of-the-art technology and four patents filed by the Indian Institute of Technology Madras. IndusInd Bank has become the first bank in India to implement Intellect(TM) PRIVACY, an online and internet banking security card, for its internet banking customers. The technology will protect customers and banks from practically all kinds of phishing attacks, viz. deceptive e-mail, key/screen logger, brute force/dictionary attacks and Trojans, etc .Intellect PRIVACY uses multi factor ,dynamic authentication technology providing for authorizing online banking transactions, in a completely secure platform. Commenting on the innovation, Professor L S Ganesh, Coordinator of the programmer, said, "At IIT Madras, the Department of Computer Science and Engineering and the Department of Management Studies got particularly interested in designing an internet security technology that is cost efficient and easy to use in a rapidly growing ecommerce scenario, and transferring it commercially.

11. Azouzi, D. (2009) This paper aims to check if the current and prompt technological revolution altering the whole world has crucial impacts on the Tunisian banking sector. Particularly, this study seeks some clues on which we can rely in order to understand the customers' behavior regarding the adoption of electronic banking. To achieve this purpose, an empirical research is carried out in Tunisia and it reveals that panoply of factors is affecting the customers-attitude toward e-banking. For instance ;age, gender and educational qualifications seem to be important and they split up the group into electronic banking adopters and traditional banking defenders and so, they have significant influence on the customers' adoption of e-banking. Furthermore, this study shows that despite the presidential incentives and in spite of being fully aware of the ebakings benefits, numerous respondents are still using the conventional banking. It is worthy to mention that the fear of loss because of transactions errors or hackers plays a significant role in alienating Tunisian customers from online banking.

12. Hill (2009) conducted a study concerned with identifying the characteristics of online banking users. She mentioned that it is commonly assumed that demographics do influence the acceptance of electronic self-service tools, such as online banking. The result of the study was that people who use such services are young, trendy and high earning. They actively seek out online banking tools, and they want to conduct all transactions through the same channel.

13. B. Dizon, J.A. (2009) have founded that "E- Bakings appeal is primarily its convenience. Clients now a days want instant results; they don't want to wait anymore,"
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said Francisco M. Caparros,Jr., senior vice-president of Asia United Bank and president of Banc Net. It's also turned out to be a more efficient way to process transactions, as ebanking does away with most of the paperwork that clients have to accomplish. "A lot of people don't like filling forms," Mr. Caparros added. "Online banking, in particular, relies on usernames and passwords which need to be protected," said Ferdinand G. La Chica, first vice- president and marketing group head for Sterling Bank of Asia. These anti- theft barriers are at times supplemented by transaction passwords and "tokens", often a key chain-like device that is issued to the client and generates random, one-time passwords to enable him to log into his account online. Last year, the Rural Bank Association of the Philippines announced that its members are looking to appoint local merchants like sarisari stores as third party agents where consumers can open new accounts and make large payments. Such informal outlets will enable banks to reach out to small-income businesses and individuals, particularly those in the agrarian sector, most of who are based outside the city center.

14. Uppal, R.K. & Chawla, R. (2009) highlights the customer perception regarding ebanking services. A survey of 1,200 respondents was conducted in Ludhiana district, Punjab. The respondents were equally divided among three bank groups namely, public sector, private sector and foreign banks. The present study investigates the perceptions of the bank customers regarding necessity of e-banking services, quality of e-banking services, bank frauds, future of e-banking ,preference of bank customers regarding banks, comparative study of banking services in various bank groups, preferences regarding use of e-channels and problems faced by e-bank customers. The major finding of this study is that customers of all bank groups are interested in e-banking services, but at the same time are facing problems like, inadequate knowledge, poor network, lack of infrastructure, unsuitable location, misuse of ATM cards and difficulty to open an account. Keeping in mind these problems faced by bank customers, this paper frames some strategies like customer education, seminars/meetings, proper network and infrastructure facilities, online shopping facilities, proper working and installation of ATM machines, etc., to enhance e-banking services. Majority of professionals and business class customers as well as highly educated and less educated customers also feel that e-banking has improved the quality of customer services in banks.

15. Reeti, Sanjay, and Malhotra, A. (2008) examined about the Customers perspectives regarding e-banking in an emerging economy. So that, the author determining various factors affecting customer perception and attitude towards and satisfaction with ebanking is an essential part of a bank's strategy formulation process in an emerging economy like India. To gain this understanding in respect of Indian customers, the study
22

was conducted on respondents taken from the northern part of India. The major findings depict that customers are influenced in their usage of e-banking services by the kind of account they hold, their age and profession, attach highest degree of usefulness to balance enquiry service among e-banking services, consider security &trust most important in affecting their satisfaction level and find slow transaction speed the most frequently faced problem while using e-banking.

16. Hsun, K.S. (2008), This study considers the coherence of the financial service sector and adopts different observational variables to identify innovation capital (training and R&D density) and process capital (IT system sufficiency). The results show that human capital has a direct impact on both innovation capital and process capital, which in turn affect customer capital; while finally, customer capital affects business performance. In addition, there is a negative relationship between process capital and customer capital in the financial service sector. It suggests that in the financial service sector, customer satisfaction relies on a sufficient degree of training and R&D density. Intemperate investment on the support of e-banking operation systems may not be a good answer.

17. Malhotra, P. & Singh, B. (2007) stated that the larger banks, banks with younger age, private ownership, higher expenses for fixed assets, higher deposits and lower branch intensity evidence a higher probability of adoption of this new technology. Banks with lower market share also see the Internet banking technology as a means to increase the market share by attracting more and more customers through this new channel of delivery. Further, the adoption of Internet banking by other banks increases the probability that a decision to adopt will be made .An understanding of the factors affecting this choice is essential both for economists studying the determinants of growth and for the creators and producers of such technologies. From this perspective, understanding the factors determining the adoption of technology becomes highly relevant from the policy point of view. Moreover, the studies on the adoption of financial innovations are related to developed markets, e.g. US or European banking markets. Hence, this paper contributes to the empirical literature on diffusion of financial innovations, particularly Internet banking, in a developing country.

18. Shah & Braganza (2007) indicates the Critical Success Factors in e-banking and the author suggest in this article that the organizational factors, which are critical to the success of e-banking, are investigated. Different pieces of literature report different factors as key to success and generally based on subjective, perceptual data. A synthesis of existing literature is a basis for survey questions. The data was collected from UK
23

based financial sector organizations who are offering their services on electronic channels, using postal questionnaires. The top factors found to be most critical for the success in e-banking are: quick responsive products/services, organizational flexibility, services expansion, systems integration and enhanced customer service. An important lesson from this research is that organizations need to view the e-banking initiative as a business critical area rather than just a technical issue. They need to give attention to internal integration, which may include channels, technology and business process integration, and improving the overall services to their customers.

19. Awamleh (2006) analyses the internet banking channels and service preferences of educated banking consumers in the UAE and examines the factors influencing the intention to adopt or to continue the use of internet banking among both users and non users of internet banking. It is shown that although the banking sector in the UAE is a regional leader, internet banking in the UAE is yet to be properly utilized as a real added value tool to improve customer relationship and to attain cost advantages. The Technology Acceptance Model (TAM) was used to identify factors influencing the intention to adopt and continued use of internet banking customers. Data was collected from internet banking users and potential users in the United Arab Emirates and factor analyses and multiple regression analyses were conducted to examine the data. Relative usefulness is introduced as one of the factors and is defined as the degree to which a new technology is better than existing ones. There is a significant difference between users and non-users on six of the seven factors identified. Further, it was revealed that relative usefulness, perceived risk ,computer efficacy and image had a significant impact on continued usage of internet banking for IB Users, while relative usefulness and result demonstrability were the only ones significant for Non-users of internet banking. The effects of age, gender, income, and e-commerce users also explored. Result demonstrability is significant for all categories of non-users except for those with income below AED 7,000.Implications of results were discussed, and future research directions outlined.

20. Bauer, Malik & Falk (2006) reviews the measuring the quality of E-Banking portals. In the internet economy, the business model of web portals has spread rapidly over the last few years. Despite this, there have been very few scholarly investigations into the services and characteristics that transform a web site into a portal as well as into the dimensions that determine the customers evaluation of the portals service quality. Based on an empirical study in the field of e-banking the authors validate a measurement model for the construct of web portal quality based on the following dimensions: security and trust, basic services quality, cross-buying services quality, added value, transaction
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support and responsiveness. Findings The identified dimensions can reasonably be classified into three service categories: core services, additional services, and problemsolving services. Originality/value The knowledge of these dimensions as major determinants of consumers quality perception in the internet provides banks a promising starting point for establishing an effective quality management for their e-businesses.

21. Kamiya (2006) explains that indian banks are trying to make your life easier. Not just bill payment, you can make investments, shop or buy tickets and plan a holiday at your fingertips. In fact, sources from ICICI Bank tell us, "Our Internet banking base has been growing at an exponential pace over the last few years. Currently around 78 per cent of the bank's customer base is registered for Internet banking." To get started, all you need is a computer with a modem or other dial-up device, a checking account with a bank that offers online service and the patience to complete about a one-page application--which can usually be done online. You can avail the following services: Bill payment Services, Fund Transfer, Credit Card, Internet shopping, and Investment though Internet etc. Due to the Internet banking the life of an individual becomes easy and raises the standard of life of the humans.

22. Veneeva (2006) explains that the world is changing at a staggering rate and technology is considered to be the key driver for these changes around us. Many activities are handled electronically due the acceptance of information technology at home as well as at workplace. Internet can be seen as a truly global phenomenon that has made time and distance irrelevant to many transactions. The evolution of electronic banking started from the use of automatic teller machines (ATM) and has Passed through telephone banking, direct bill payment, electronic fund transfer and the revolutionary online banking .The future of electronic banking according to some is the acceptance of WAP enabled banking and interactive-TV banking (Petrus & Nelson, 2006). But it has been forecasted that among all the categories, online banking is the future of electronic financial transaction. The rise in the e-commerce and the use of internet in its facilitation along with the enhanced online security of transactions and sensitive information has been the core reasons for the penetration of online banking in everyday life.

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CHAPTER 4 DATA ANALYSIS AND INTERPRRETATION

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Demographic Profile
1. From the total respondents 64% were males and 36% were females.

Gender
Female 46% Male 54%

2. The chart below depicts the respondents classification based on user and non user criteria. Out of total respondents ,144 respondents were internet banking users and 56 were non users.

User-Non user
Non user 28%

User 72%

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3. Most of the respondents belongs to the age group of 24-30, while 18-23 and 31-39 age group respondents were almost equal in number.

Age
400% 300% 200% 100% 0% 18-23 24-30 31-39 Above 40

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4. Level of satisfaction and trust in IB The first research objective referred to the level of satisfaction and trust in using IB .The respondents were provided with a list of 11 statements in question 4 of the questionnaire stating the reasons for using IB. In relation to these statements, the respondents were asked to indicate the degree of agreement with each of the statements. A 5-point Likert type-agreeing scale was provided ranging from strongly disagree to strongly agree. In terms of frequencies, the following results were found to be significant. Vast majority of IB users agree that the service is more convenient than in-branch banking; transactions can be done faster and allows easier maintenance of transaction activities. Overall, most users agree that IB is better than in-branch banking, however, on average the users were uncertain whether IB is more reliable or safer and secure. Table 1: Extent of agreement with each statement as a reason for using IB
Q No 1 2 3 4 5 6 7 8 9 10 11 Statement IB is more convenient than in-branch banking. IB is more reliable and safer than branch banking. IB transactions can be done faster than branch banking. IB allows easier maintenance of transaction activities than branch banking. I use IB for better rates offered and charges only I use IB to meet my cash requirement after the banks have closed. I feel hesitation to wait in a queue for depositing / withdrawing the cash. I am Well Conversant with IB and I found it a User friendly system. I Use IB as a Status Symbol. I have a strong faith that machine cannot make any mistake. I am quite satisfied with the transaction system of IB. Strongly Disagree 2 4 0 0 2 12 0 12 2 16 6 Disagree 0 6 14 14 10 14 16 14 52 28 12 Neutral 0 6 16 16 28 6 26 14 24 26 10 Agree 44 50 12 46 80 8 40 62 38 52 40 Strongly Agree 80 60 84 50 6 86 44 24 10 4 58

Majority of the customers shows their intention that they are satisfied with Internet banking (IB) services. They feel that IB is more reliable and safe than branch banking. It also provides easier maintenance of transaction activities. Customers express in statement 5 that benefits / facilities which they are enjoying from internet banking are more than its cost which they are paying. From statement 7 it can be concluded that mostly customer prefer internet banking because they are very busy & they do not want to waste their time by standing in queues and wait their turn for depositing / withdrawing cash. The frequencies of statements 1, 3and 6 are found that the customers who are satisfied with IB shows their extreme level of satisfaction (Strongly Agree) with Convenience, Speed, and Banking services after the banking business hours. Many customers take the procedure of branch banking as a hectic or bore job and feel convenient in IB system. It means that these are the critical factors which have a major contribution and important role in success of internet banking
29

(IB) and are on top priorities of the customers. This result gives the message to the top level management of Banking sector that in order to retain and increase the number of users of IB services they should not compromise on above mentioned critical factors. The conclusion is that current IB users are generally satisfied with the service, which proves hypothesis 1 true. The level of satisfaction was also found from question 11 of the questionnaire, which asked the respondents to indicate how satisfied they were with their last time using IB service. Here also, a 5-point Likert type scale was used from strongly disagree to strongly agree. The analysis revealed that most of the users of IB services are generally satisfied with it as shown below in Table 3 and Figure 1. Table 2: IB users' level of satisfaction with the service Frequency 6 12 10 40 58 126 74 200 Percent 3.0 6.0 5.0 20.0 29.0 63.0 37.0 100.0 Valid Percent 4.8 9.5 7.9 31.7 46.0 100.0 Cumulative Percent 4.8 14.3 22.2 54.0 100.0

Valid

Missing Total

Strongly Disagree Disagree Neutral Agree Strongly Agree Total System

This table shows that 126 respondents (out of 200) fill this question in which 46% users are strongly satisfied with IB services and 31.7% users mark on Agree point which also shows that they are satisfied. Collectively 77.7% users of IB services are satisfied (Agree & Strongly Agree) with IB services. So this result also proves the second Hypothesis True. Figure 1 of Statement 11 gives a quick view of the results. Figure 1: IB users' level of satisfaction with the service

70 60 50 40 30 20 10 0 Strongly Disagree Disagree Neutral Agree Strongly Agree

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5. Main reasons for not using IB Opposite to the first research objective, the second objective referred to the main reasons for not using IB. The respondents were provided again with a list of twelve statements in question 5 of the questionnaire stating the reasons for not using IB. In relation to these statements, the respondents were asked to indicate the degree of agreement with each of the statements. A 5point Likert type-agreeing scale was provided ranging from strongly disagree to strongly agree. The relevant data in terms of frequency values for the twelve statements were presented in Table 4. In terms of frequencies, the following results were found to be significant. Table 3: Extent of agreement with each statement as a reason for not using IB
Q No 12 13 14 15 16 17 18 19 20 21 22 23 Statement I do not have a PC at home/work. ATM Machine records incorrect Debit & Credit amounts. I am not satisfied with the Security system of IB services especially of ATM Machines. Quality of IB services is bad. It takes time to finalize the transaction. I do not know how to use IB. I do not trust the internet as a channel for banking as it is not safe. I like meeting people and prefer face-to-face banking. There are chances of Fraud and forged transactions in Internet Banking services. Whenever I need money I experienced problems with IB services. E.g. ATM machine I feel helpless (after business hours) when my card is stuck up by ATM Machine. I am NOT Satisfied with IB Services. Strongly Disagree 20 10 18 14 8 24 20 38 4 12 10 12 Disagree 34 26 6 10 6 26 12 20 14 8 8 18 Neutral 2 0 4 8 4 4 2 0 26 4 4 2 Agree 16 30 16 38 28 16 30 6 18 26 24 20 Strongly Agree 2 8 30 4 28 4 10 10 12 24 28 22

On average, most non-users of IB disagree that any of the listed reasons above was a factor for not using the service; however, the respondents were almost equally divided about the degree of trust they attach to IB and most of them indicated they prefer in-branch banking rather than IB. Therefore, this could be because of lack of trust in using IB. In support of this assumption, which is the second hypothesis of the research, customers' comments were also used to prove it. Of the 200 surveyed respondents, 47 provided with their comments that are listed in Table 4 below. Significantly, the figures show that the safety and security are what most bank customers concerned about. Table 4: Respondents Comments for not Using IB in Qatar Comments No. of Responses Ensure high safety and security for using 28 IB Make IB user-friendly 6
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Speed up the time required to finalize 5 transactions Improve the quality of IB services Show detailed information of transactions Provide up to date account information Monitor the transactions better Spread IB knowledge and lower internet rate Total 4 1 1 1 1 47

6. Perceived importance of IB services The third objective of the research referred to the extent customers perceive IB services as important. The respondents were provided with a list of 19 IB services in question 7 of the questionnaire. In relation to these 19 services, the respondents were asked to indicate the degree of importance they attach to using the services online. A 5-point Likert type importance scale was provided ranging between very unimportant and very important . The relevant data in terms of frequency values for the 19 banking services were presented in Table 5. The following frequency results were found to be significant. The majority of respondents, 45-57% perceived the top four IB services as very important compared with the other listed fifteen services, which only 10-29% was perceived as very important. These top IB services were "review accounts balances", "review credit cards balances", "obtain detailed account transaction histories" and "review credit cards transactions." This clearly suggests again that overall most of the respondents did not trust the IB as a channel to conduct their banking transactions, but perceived it as very useful and important for obtaining information about their account status, which proves hypothesis 3 of this research to be true. Table 5 : Current and potential use of IB services Very Unimport ant. 12 18 Unimport ant 4 6 4 4
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IB Services

Neutral 24 24 42 44

Importan t 46 46 50 42

Review accounts balances Review credit cards balances Obtain detailed account transaction 14 histories Review credit cards transactions 20

Very Importan t 114 106 90 90

Transfer funds between own accounts Transfer funds to other persons accounts Transfer funds to other accounts outside the country Pay bills using available cash in the accounts Pay bills using credit cards Stop credit cards Order checks books Request SMS services Order to buy IPO Order to buy and sell shares Open new accounts Issue standing orders Issue drafts Apply for loans Apply for credit cards

32 40 34 20 34 48 38 42 62 60 46 50 42 50 42

10 20 28 10 10 16 24 26 16 16 22 24 26 22 20

54 58 48 56 50 58 68 56 76 82 66 68 78 56 66

46 44 32 56 52 30 26 30 26 22 44 34 30 42 38

58 38 58 58 54 48 44 46 20 20 22 24 24 30 34

In this research, correlation results were also tested, however, no significance was found except for few ones. For example, there was a strong positive relationship between variable 19 (Transfer funds to other persons' accounts) and variable 22 (Pay bills using credit cards). This makes sense as the IB user who feels safe and secure to use the service for transferring funds to other person's accounts, he/she would also most probably feel the same way towards paying his/her bills online using the credit cards. Similarly, there was a strong positive relationship between variable 20 (Transfer funds to other accounts outside the country) and variable 22 (Pay bills using credit cards). Another strong positive relationship were found between variables 14, 15, 16, and 17 which are about obtaining information regarding account status. Again, here it makes sense as the IB user who is risk averse, he/she would be less willing to us the service for conducting banking transactions online. In addition, the usage of the IB was tested to see whether it is associated with demographic variables such as age, education etc. The conclusion is that IB is not associated with demographic variables, as no strong correlation exists between them.

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CHAPTER 5 CONCLUSION

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In line with the global industries' move in acquiring the latest advanced technology to stay ahead of competitors, banks throughout the world have notably been moving in the same direction. Evidently, an internet-banking service is considered a new era in banking, which banks spend considerable amount of money on to have it available to their customers and to cut their operations costs. Unfortunately, evidences have shown that a large number of customers do not use online banking for various reasons, despite its benefits and the availability of internet access among most of the customers. This study reveals that the major issues in the IB services are security, safety and the lack of trust especially on ATM machines. Fraudulent transactions, robbery, bad and unreliable ATM services (e.g. stuck-up the ATM card, incorrect Dr or Cr amount in the account etc) are the reasons which are playing a vital role in reducing the trust of consumers on IB. This research paper found that the major IB concern amongst customers was the safety and security of the service, which forms a real obstacle to use the service. The research also found that even most of those who frequently use the IB services, usually do not conduct much of transactions, but find the service very useful for checking their account status. This means that the IB services is not doing the purpose it was originally made for, which is to provide customer convenience and reduce customer visits to the banks. The paper also found that lack of knowledge could be one of the factors for having a low rate of IB usage. The results also show that reliability, convenience, speed, safety and security have the major contribution to retain and attract the customers. Finally the services which are not available by all banks e.g. Cash depositing facility through ATM machines, SMS/E-mail Alert Service, Payment of utility bills through internet etc are the most desirable services by the customers.

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CHAPTER 6 RECOMMENDATIONS

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Based on the results found in this paper, it is strongly believed that ensuring the security of IB and familiarizing customers with how to use the service will definitely increase the rate of using IB services. From this standing point, bank managers should consider this as a strategic objective to maintain their customers and gain a competitive advantage against their rivals. It also requires the local telecommunication company to reduce the internet rates in order to encourage more customers to have access to the internet and it requires the government to support the bank industry in achieving this objective because security is an issue that concerns the whole society. In order to create and rebuilt the trust of customer banks should take further strong security measures from every aspect in IB services. Banks should also improve and enlarge their contribution through ATM to establish a long-lasting and continuous relationship with consumers. They should focus on significant aspects of confidence and time alone as well as reliable procedures of ATMs and other services. Mostly customers are still unaware from IB services. So banks should take reasonable steps, for example, advertising campaign, seminars etc in order to get aware the society from the uses and benefits of IB services. Many IB services are still not offered by all banks. So commercial bank should spend large amount on launching these services effectively. They should more enthusiastically observe consumers preferences for triumphant reaction. Government should also play its role in the development of IB. Government / State Bank should reduce service charges on the transactions. It should introduce new policies which assist the commercial banks to promote IB business.

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LIMITATIONS
1. The duration of time for the study was limited & hence a comprehensive & elaborate study could not be undertaken. 2. The limitations of secondary data will also be associated with my project.

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BIBLIOGRAPHY
WEBSITES VIEWED :
1. 2. 3. 4. www.scribd.com/doc/54308485/16/OPPORTUNITIES www.scribd.com/doc/23737622/Any-Where-Money www.scribd.com/doc/35549232/Sum-Int http://en.wikipedia.org/wiki/atm

RESEARCH REPORTS :
1. A report on Customer perception towards Internet banking w.r.f to private and foreign banks in India by Siddharth Aggarwal, Institute of Management Studies 2007 2. A report on electronic banking and information technology in banks. by Dr. N. Aravindakshan , M G University , Kottayam Kerala.

RESEARCH PAPERS :
1. Acharya, R. and Lingam, A. (2008). Online banking applications and community bank ` performance. The International Journal of Bank Marketing, Vol. 26 No. 6, 2008 pp. 418439 2. Akinci, S., Aksoy, S., Atilgan, E. (2004). Adoption of Internet banking among sophisticated consumer segments in an advanced developing country. The International Journal of Bank Marketing Vol. 22 No. 3, 2004 pp. 212-232 3. Barczak, G., Ellen, P.S. and Pilling, B.K. (1997). Developing typologies of consumer motives for use of technologically based banking services. Journal of Business Research, Vol. 38 No. 2, pp. 131-9. 4. Broderick, A. and Vachirapornpuk, S. (2002). Service quality in Internet banking: the importance of customer role. Marketing Intelligence & Planning, Vol. 20, No. 6, pp. 327 335

5. Meuter. A (2000), "An empirical investigation of the determinants of user acceptance of internet banking", Journal of Organizational Computing and Electronic Commerce, Vol. 13 No. 2, pp. 123-45

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6. Riquelme. E. H (2009) Internet Banking Customer satisfaction and Online Service Attributes Journal of internet banking and commerce, Vol. 14, no. 2 7. Nachiket MOR, Head of ICICI's Treasury, in March (2000). Service quality evaluation in internet banking: an empirical study in India, Int. J. Indian Culture and Business Management, Vol. 2, No. 1, pp.3046. 8. Provision of electronic banking in the UK and the republic of Ireland, Journal: International Journal of Bank Marketing; year; 1999 volume; 17 Issue: 2 Page: 72-83

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Questionnaire
Name: __________________ Gender: Male ( ) Female( ) Age (in years): 18-23 24-30 31-39 Above 40

Q: 1 Do you have a bank account? * Yes * No Q: 2 Do you have an internet banking facility with you? * Yes * No Q: 3 How often, do you use internet banking for the transaction purposes? * Occasionally * Frequently * Never * Often * Very often Q: 4 Reasons for using IB services
Statement IB is more convenient than in-branch banking. IB is more reliable safer than branch banking. IB transactions can be done faster than branch banking. IB allows easier maintenance of transaction activities than branch banking. I use IB for better rates offered and charges only I Use IB to meet my cash requirement after the banks have closed. I feel hesitation to wait in a queue for depositing / withdrawing the cash. I am Well Conversant with IB and I found it a User friendly system. I Use IB as a Status Symbol. I have a strong faith that machine cannot make any mistake. I am quite satisfied with the transaction system of IB. Strongly Disagree Disagree Neutral Agree Strongl y Agree

Q: 5 Reasons for not using IB services

I do not have a PC at home/work. ATM Machine records incorrect Debit & Credit amounts. I am not satisfied with the Security system of IB services especially of ATM Machines. Quality of IB services is bad. It takes time to finalize the transaction. I do not know how to use IB. I do not trust the internet as a channel for banking as it is not safe. I like meeting people and prefer face-to-face banking. There are chances of Fraud and forged transactions in Internet Banking services. Whenever I need money I experienced problems with IB services.

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E.g. ATM machine I feel helpless (after business hours) when my card is stuck up by ATM Machine. I am NOT Satisfied with IB Services.

Q: 6 Possible Solution of Existing Problems

Solutions Ensure high safety and security for using IB Speed up the time required to finalize transactions Improve the quality of IB services Show detailed information of transactions Provide up to date account information Monitor the transactions better Spread IB knowledge and lower internet rate

Q: 7 Potential Services in Internet Banking (IB) and their Perceived Importance

Very Unimportant .

IB Services Review accounts balances Review credit cards balances Obtain detailed account transaction histories Review credit cards transactions Transfer funds between own accounts Transfer funds to other persons accounts Transfer funds to other accounts outside the country Pay bills using available cash in the accounts Pay bills using credit cards Stop credit cards Order checks books Request SMS services Order to buy IPO Order to buy and sell shares Open new accounts Issue standing orders Issue drafts Apply for loans Apply for credit cards

Unimportant

Neutral

Important

Very Important

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